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Legislative Changes Affecting Salary Administration, 87th Legislature

FPP F.021

ERS, TRS and ORP Retirement Rates for Fiscal 2022 and Fiscal 2023

ERS Retirement Rates for Fiscal 2022 and Fiscal 2023

The General Appropriations Act (GAA) provides that the rates for both the employee contribution and the state contribution for members of the Employees Retirement System of Texas (ERS), Judicial Retirement Plan I and Judicial Retirement Plan II will not change for the September 2021 pay period.

The table below outlines the rates effective Sept. 1, 2021.

Retirement Plan Employee Contribution Rate State Contribution Rate¹
Fiscal 2022 Fiscal 2023 Fiscal 2022 Fiscal 2023
ERS² 9.5% 9.5% 9.5% 9.5%
Judicial Plan 1 9.5% 9.5% 0.0% 0.0%
Judicial Plan 2 9.5% 9.5% 15.663% 15.663%
  • ¹ This rate is pursuant to Senate Bill 1, Article I, Employees Retirement System Riders 4 and 6.
  • ² This includes members of the Legislature covered by ERS. These rates are not applicable to the new cash balance retirement program created by Senate Bill 321 for employees hired on or after Sept. 1, 2022.

The Law Enforcement Custodial Officer Supplemental (LECOS) rates will remain the same.

The payroll retirement contribution will continue to be paid by agencies at the rate of 0.5 percent of base salary for all employees who are members of the retirement system. It will be paid from the agencies’ budgets.

TRS Retirement Rates for Fiscal 2022 and Fiscal 2023

For employees covered by Teacher Retirement System of Texas (TRS), the state contribution rate will increase to 7.75 percent for fiscal 2022 and will increase to 8 percent for fiscal 2023.

The employee contribution rate will increase to 8 percent for fiscal 2022 and 2023.

Optional Retirement Program (ORP) Rates for Fiscal 2022 and Fiscal 2023

For employees participating in the Optional Retirement Program (ORP), the state contribution rate will remain at 6.6 percent for both fiscal 2022 and fiscal 2023. Employers are authorized to use local funds or other sources of funds to supplement the General Revenue Fund appropriation at a rate up to 1.9 percent. The employee contribution rate will remain at 6.65 percent for both fiscal 2022 and fiscal 2023.